Financial Risk Manager Part 1

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Explanation:

In the initial quote, you could buy 11.9500 pesos per US dollar. After the change, the US dollar would buy 12.4000 pesos. The peso fell in value against the dollar.

To determine whether the peso appreciated or depreciated and whether the dollar appreciated or depreciated, we can calculate the percentage change.

Initial exchange rate (USD/MXN): 11.9500
New exchange rate (USD/MXN): 12.4000

To calculate the percentage change:

\text{Percentage Change} = \left( \frac{\text{New Rate} - \text{Initial Rate}}{\text{Initial Rate}} \right) \times 100

= \left( \frac{12.4000 - 11.9500}{11.9500} \right) \times 100 = \left( \frac{0.4500}{11.9500} \right) \times 100 \approx 3.76\%

So, the peso has depreciated by 3.8%.

Since the exchange rate went from 11.9500 to 12.4000, you now need more pesos to get one US dollar. This means the peso has weakened, and the dollar has strengthened.

Now,

\frac{\frac{1}{12.4000} - \frac{1}{11.9500}}{\frac{1}{11.9500}} = -0.03629

Therefore, the dollar has appreciated by 3.6%

Explanation:

In the initial quote, you could buy 11.9500 pesos per US dollar. After the change, the US dollar would buy 12.4000 pesos. The peso fell in value against the dollar.

To determine whether the peso appreciated or depreciated and whether the dollar appreciated or depreciated, we can calculate the percentage change.

Initial exchange rate (USD/MXN): 11.9500
New exchange rate (USD/MXN): 12.4000

To calculate the percentage change:

\text{Percentage Change} = \left( \frac{\text{New Rate} - \text{Initial Rate}}{\text{Initial Rate}} \right) \times 100

= \left( \frac{12.4000 - 11.9500}{11.9500} \right) \times 100 = \left( \frac{0.4500}{11.9500} \right) \times 100 \approx 3.76\%

So, the peso has depreciated by 3.8%.

Since the exchange rate went from 11.9500 to 12.4000, you now need more pesos to get one US dollar. This means the peso has weakened, and the dollar has strengthened.

Now,

\frac{\frac{1}{12.4000} - \frac{1}{11.9500}}{\frac{1}{11.9500}} = -0.03629

Therefore, the dollar has appreciated by 3.6%

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Q.3581 If the exchange rate quote for the Mexican peso (USD/MXN) changes from 11.9500 to 12.4000, then in approximate terms:

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Last updated: July 21, 2026 at 02:10

The peso depreciated by 3.8%, and the dollar appreciated by 3.6%

The dollar depreciated by 3.8%, and the peso appreciated by 3.6%

The peso appreciated by 3.8%, and the dollar depreciated by 3.6%

The dollar appreciated by 3.8%, and the peso depreciated by 3.6%